Autonomous vehicles (AVs) are one of the most anticipated technologies in the world. And although you might not have seen one on the roads yet, they are out there. Business Insider predicts two million self-driving cars on the road by the end of this year, and ten million by 2020.
The main benefits for consumers are obvious: fewer driving related accidents, injuries and deaths, shorter commutes, and freeing up time as drivers transition into passengers.
But what does this mean for auto repair shop owners?
Like it or not, a tidal wave of change is coming. And whether you find yourself riding on top of that wave or seeing it crash over your head will depend on how well prepared you are to meet it. For those looking ahead and getting ready for it now, AVs present a new beginning rather than the beginning of the end.
McKinsey and Company identifies three stages in the self-driving vehicle revolution:
- Industrial fleets
- Early adoption
- Mainstream
We’ll look at each of these stages, their impacts on the auto repair industry, and how you can position your business to thrive in the self-driving paradigm.
Stage One: Industrial Fleets
Companies like Google, Tesla, and Uber have already put a number of autonomous vehicles into service. What we’ll see over the next few years is the growth of these industrial fleets. Corporations will start purchasing and testing AVs for their own transit-related needs, too.
During this stage, AVs will be mostly unavailable to consumers. But these industrial fleets will provide the proof-of-concepts needed to take them to the next level.
While this is happening, auto repair shops might not see any real changes in their business. Industrial fleets are usually serviced directly through manufacturers, and while independent shops may see vehicles involved in collisions with AVs, they are unlikely to work on the AVs themselves.
This can lead to a false sense of security, and many auto repair shops might be inclined to wait until the changes affect them. That would be a mistake, however, as this is the time to prepare your shop for the next stage.
How do you prepare?
- Learn everything you can about AV technologies by making them a focus of your continuing education program.
- Get out in front of any certifications or partnerships offered by AV manufacturers
- Anticipate which parts of your business will decline as the number of consumer AVs on the roads increase
- Create a strategy for replacing that lost business with new incomes and services needed in an industry dominated by AVs
Stage Two: Early Adoption
This is where changes start impacting your auto repair shop business. At first they could seem to be minor, subtle changes, as the relative number of autonomous vehicles on the roads remain small. But as the industry progresses toward stage three and the ratio of self-driving cars grow, those impacts will grow, too.
Customers who purchase high end luxury cars will make up a large portion of AV early adopters. So you might see fewer high ticket models in your shop, as manufacturers collect all the data they can on any incidents. This could drive some repair shops to focus on lower end business instead, but that would be a mistake once stage three truly hits.
What auto repair shop owners should focus on here is in building their computer and electronic expertise. Many auto technicians already do half their work on tablet mobile devices, and that trend becomes even more important with the advent of fully computerized AVs.
Mechanical skills will always be a part of auto repairs, of course, but learning AV software systems – navigation, communication, and diagnostics – should be a top priority.
Also, this is the time to invest in certification programs with the AV manufacturers. Why? Because the McKinsey report suggests that 60% of autonomous vehicle owners will simply accept (or send to) whatever maintenance facility the vehicle recommends. You want your shop to be one of those preferred options as the AV market hits stage three, and the way to do that is by being an early adopter yourself and building those relationships before everyone else.
The good news is that you still have plenty of time to put yourself in the right position. McKinsey predicts the early adoption stage will start climbing around 2030.
Stage Three: Mainstream
Envision this scenario: every car on the road is an autonomous vehicle. There are no more wrecks, only routine maintenance, part failures, and upgrades. And since you don’t have to “take” a self-driving car to a repair shop, distance and location factors disappear. Future Pundit describes how an autonomous vehicle could simply drive itself to the nearest facility, or a self-driving tow truck could arrive to pick it up – while you get to work in an autonomous taxicab.
How does your auto repair shop compete in that industry landscape? While this extreme vision is still decades away, you should understand where the industry’s heading if you want to retain a role in it.
The McKinsey report predicts that automobile accidents would decline up to 90% in an industry dominated by fully autonomous vehicles. For now, however, partial autonomous will be the norm. Much more data is needed before human drivers are “taken out” of the equation completely. New regulations will have to be written. And, ultimately, it remains to be seen how many people will really want to give up driving.
As an auto repair shop owner, you’ll need to determine where your business fits once AVs hit the mainstream. Some possibilities include:
- Providing OEM certified repairs
- Upgrading parts and components
- Preventive maintenance
- Tune ups and optimizations
- Specialty services
While most of these are similar to what you’re doing now, vehicles won’t need physical repairs as often. You’ll still see part failures, of course, just like you do with any electronics these days. But to sustain your business, you’ll need to focus more on preventive work, upgrades, and optimizations.
Another business opportunity is to provide specialty services, such as automotive multimedia, high performance parts, or interior reconfigurations. The rise of autonomous vehicles will bring with them a whole new passenger culture looking for things to do while in transit, and you could find your niche there, as well.
A Fundamental Shift in Marketing
All of this suggests a fundamental shift from necessity to luxury services. Repair work and mandatory maintenance might not be enough to sustain tomorrow’s auto repair shops. And that could give businesses with solid marketing strategies a huge upper hand.
So while you prepare for all those new autonomous vehicle technologies, you might consider beefing up your marketing and sales training, too. Those skills could be just as important in winning your share of the AV repair industry as knowing how to do the work.
Kevin Fitzpatrick is the CEO of Farsight. Farsight offers ruggedized tablets and software for multi-vehicle diagnostic and repair solutions.
